How much risk in stock market

NEW DELHI: India’s largest engineering and construction company, Larsen & Toubro (L&T), along with its peers has taken a big knock from the Covid-19 lockdown as work in all projects came to a grinding halt. But once India emerges out of the lockdown, the company is likely to be one of fastest gainers, say analysts. The company managed to bag multiple ‘large’ and ‘significant’ domestic and international contracts in the past one month, which has substantially fattened its order book. Among these include large orders from the Indian Army, IndianOil and the Karnataka government while several significant orders from BHEL, Hindalco, UP government and many others in various fields of engineering. As a general practice, the company does not provide the exact size of the contract, but give a price bracket. ‘Large’ contracts are valued between Rs 2,500 crore and Rs 5,000 crore and ‘significant; contracts are valued between Rs 1,000 … [Read more...] about Market is betting on this EPC player to see fastest revival post-lockdown

BENGALURU: Global funds recommended trimming bonds and keeping equity allocations on hold at a seven-month low this month even with world stocks on a tear, a Reuters poll showed on Friday. Asset managers were almost evenly split on whether this year's lows for key indexes would be revisited, in contrast to a Reuters poll of market strategists published on Thursday which showed most on the sell-side don't expect that to happen. After the March mayhem -- driven by fears the global economy would plummet into recession due to the coronavirus, which has infected over 5.8 million people -- global stocks have rallied on hopes unparalleled global stimulus would drive a strong and quick V-shaped recovery. But fund managers and economists have consistently said the recovery would be either U-shaped, with a prolonged trough, or like a tick mark where the rebound is not as powerful or as fast as the initial drop. The May 12-28 Reuters poll of 35 fund managers and chief investment officers in … [Read more...] about Funds recommend keeping equity allocations on hold at 7-month low: Poll

Mumbai: Billionaire Gautam Adani plans to delist his group’s power utility, Adani Power close on the heels of Anil Agarwal announcing the delisting plans of Vedanta Ltd. Adani Power promoters intend to buyback all shares of the company and delist it from the bourses. The decision on this will be taken in the next board meeting of the company. That has a power generation capacity of 12,410 megawatts across six states in India. Promoters of the company hold 74.9% stake in the company. Shares of the company closed at Rs 36.40 on the Bombay Stock Exchange, having almost declined to half from its 52-week high of Rs 73.75 that was touched in November last year. The company said that the proposed delisting will enhance the company's operational, financial and strategic flexibility including its ability to undertake corporate restructurings, acquisitions, exploring new financing structures. “The objective of the delisting proposal is to enable the promoter group to obtain full … [Read more...] about Gautam Adani plans to delist Adani Power

Bonds have much more money invested in them worldwide than in equities, but don’t get the column inches they deserve. That’s because bond returns don’t appear as spectacular as those in stocks, but in stressful times, they are good bets - more so if state backed. So, the latest Bharat Bond ETF issue will likely draw investors, who should earn 150 basis points more than the yields on existing tax-free debt. Set to be launched in July, the latest Bharat Bond ETF series aims to raise Rs 14,000 crore. This tranche of mutual fund units, tapping into retail savings, is estimated to yield a tax-free return of 6.21% for people in the marginal tax bracket. Those returns easily outpace the gains from existing tax-free bonds in the secondary market, perhaps by more than 150 basis points. So, these are cool bets for high net worth individuals shifting funds from risky assets. Tax Free Bonds (AAA) are now trading at 4.65% yield-to-maturity, a gauge used to measure returns on … [Read more...] about Should you invest in Bharat Bond ETF?

Mumbai: As foreign funds took out over $6.6 billion (Rs 48,000 crore) from the Indian market during January-March, domestic funds — which saw Rs 8,500 crore coming in through the systematic investment plan (SIP) route every month — cushioned that selling to a large extent. With net buying of over $10 billion (Rs 73,500 crore), the domestic funds countered the outflow by foreign portfolio investors (FPIs), but the leading indices closed about 29 per cent lower, a report by Motilal Oswal Financial Services noted. As a result of this divergent trend in institutional trading, FPI holding in the NSE 500 companies during the quarter fell to a five-year low of 21 per cent, while domestic holding in these companies rose sharply to 14.8 per cent — a nearly four-year high. With domestic savings being channelised more towards financial savings in recent years, the FPI-DII holding ratio has also fallen to a multi-year low of 1.4 per cent, the report said. Total domestic holding … [Read more...] about SIPs save the day for Dalal Street after FPIs sell big